Life insurance is a scheme which primarily aims at giving financial security to one’s loved ones. It basically is a contract between the policy holder and the insurer where the policy holder agrees to pay a particular sum of money after the death of the insurer to the beneficiary. The beneficiary is named by the insurer and he/ she chooses his/her loved ones to secure their future. Apart from giving financial security doing a life insurance also gives a sense of peace in minds of the insurer. They live happily and without worry of the financial issues of their children as well.
However there have been a lot of questions which have deterred the growth of life insurance policies. Many people feel that getting life insurances done for their children or other dear ones is a very complicated and costly affair. In a survey in Australia it was also found that around 6 in 10 parents who have children below the age of 17 years have not get their life insurances done. This is a disturbing statistic as any sudden accident or any illness to the parents may hamper the life of their children as well.
A proper education is required or a campaign which will emphasize on the importance of life insurance. An easy procedure and various schemes should be provided to the insurer as well. This has been one of the major problems in Australia which has resulted in the low uptake of life insurance policies. They do not have the trust on many occasions as well. At times they find the whole procedure a bit too complex and hence are not able to judge properly which scheme suits better for them. The differences between different life insurance products do not come out evidently to them. Thus a proper explanation on how it will benefit them and their loved ones to pay their education costs, car loans, etc should be done in an organized manner. Thus it will not only help individuals alone but will be beneficial for the society as a whole as well.